Determinants of Profit in the Baobab Products Value Chain: Evidence From Burkina Faso

Abstract

The baobab value chain in Burkina Faso provides a relevant case for examining the contribution of non‐timber forest products (NTFPs) to rural livelihoods. Despite several government initiatives, including the establishment of the National Agency for the Promotion of NTFPs and the adoption of strategies to improve market access, baobab products remain weakly competitive on both domestic and international markets. Persistent constraints such as limited access to training, equipment, and financing, as well as weak coordination among actors, restrict value creation and profit distribution. Understanding the determinants of profit is therefore essential to design strategies that enhance both actors' incomes and the overall performance of the sector. This study draws on data collected in 2023 from 694 actors in the Centre‐Ouest region, comprising 129 harvesters, 318 processors, and 247 traders. Combining qualitative insights with econometric analysis, the research focuses on baobab pulp and its derived products (pulp juice and pulp biscuits). Results show that actors, predominantly poorly educated women working in the informal sector, achieve positive profit margins despite pronounced profit inequalities between actors. Estimates from the seemingly unrelated regressions (SUR) model indicate that access to training, access to credit, cooperative membership, education, export opportunities, resource scarcity, and transportation costs are the main determinants of profit. Robustness checks using ordinary least squares (OLS) confirm these findings. Based on these results, policymakers and development partners can enhance the competitiveness of baobab products by improving access to training, credit, and appropriate processing equipment, supporting functional cooperatives, promoting baobab domestication, and establishing quality standards.